AMETHIS AFRICA FUND III

Promoter – Financial Intermediary

AMETHIS INVESTMENT FUND MANAGER SA

Location

• Regional - Africa

Description

The project consists of an equity participation into a generalist growth capital fund targeting private enterprises active in Africa.

Additionality and Impact

This operation consists in an investment in Amethis Africa Fund III, a generalist Private Equity fund with a target size of EUR 450m investing enterprises active in Africa. The fund manager is committing to not only deliver a good financial return but also to reach impact goals encompassing gender equity (adherence to the 2X Challenge criteria for funds), and social impact (portfolio companies are expected to provide healthcare as well as pension plans to their employees). An EIB participation is deemed critical by the fund manager to have a catalytic effect in attracting other investors. Moreover, EIB will ensure that best market practices in terms of ESG are applied, thus ensuring maximum impact at the level of portfolio companies. Fund's strategy being to provide capital to mid-sized companies, including to family-owned companies in generational transition, this operation is expected to address the financing gap market failure. Indeed, African enterprises do not have enough patient equity capital needed for them to grow and generate value added for the economy and society as a whole. By contributing to job creation, private sector development directly by supporting investee companies and indirectly by supporting their suppliers (SMEs most of the time), this operation is in line with the goals set on in the NDICI Framework, and with Global Gateway strategy as well as its investment priorities. Moreover, this operation is also aligned with the Africa Union Agenda 2063 since this operation will contribute to inclusive growth and sustainable development. An investment into this fund will contribute to the following Sustainable Development Goals: SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 10 (Reduced inequalities), SDG 11 (Sustainable Cities and Communities), and SDG 17 (Partnership for the Goals).

Objectives

The aim is to provide equity and quasi-equity to high-growth African enterprises, mainly family-owned businesses, thus contributing to develop the private sector in Africa. The operation supports a number of sustainable development goals including SDG 8- Decent work and economic growth, SDG 9- Industry, innovation and infrastructure, as well as SDG 5- Gender Equality. The fund not only aims at generating financial return but also at creating impact, since a share of the fund manager's profit is linked to several impact objectives: healthcare benefits, share of women among professional staff, decarbonisation, management of risks and negative socio-environmental impacts.

Sector(s)

• Industry - Manufacturing
• Services - Wholesale and retail trade; repair of motor vehicles and motorcycles
• Health - Human health and social work activities
• Education - Education

Proposed EIB finance (Approximate amount)

EUR 50 million

Total cost (Approximate amount)

EUR 450 million

Environmental aspects

For the environmental and social aspects, investee companies will be requested to comply with the EIB's guidelines, as well as with applicable national and EU legislation, as appropriate.

Procurement

The fund will be requested to comply with the EIB's guidelines, as well as with applicable national and EU legislation, as appropriate.

Status

Signed - 28/11/2023